In pre-Independence days, a group of residents of Palmach Regiment soldiers from kibbutz Tze'elim decided to capture a light plane which regularly delivered packages to the Beduin tent encampment near the kibbutz. The soldiers approached the plane, and upon inspecting the packages it had brought, discovered that they contained dozens of kilos of hashish.

Avraham ('Bren') Aden, who was a company commander in the Palmach's Eighth Battalion, recounted: "a well dressed gentleman came out of the tents, wearing a suit and tie. He turned out to be the pilot, an Egyptian citizen. The plane was an elegant four-seat sport model with a communications radio and starter-ignition - much more sophisticated than our 'Primus' (Auster Autocrat) planes. The pilot claimed that he had been forced to land because of a technical malfunction".

The Palmach soldiers took the pilot prisoner and towed the plane to Tze'elim Airbase. He was interrogated by Bren and flown to Tel Aviv the following day, where he was interrogated by Sherut Ha'avir Staff officers, who tried to get details about the Egyptian Army from him. When it became clear he did not know much, he was turned over to the British Mandate authorities, who returned him to Egypt.

Meanwhile, the Palmach soldiers had spent an entire night fixing up the plane's front wheel, which had been damaged in the course of the crash landing. The Battalion Commander, Hayim Bar Lev (who was destined to become an IDF Chief of General Staff) decided it was necessary to fly the plane to central Israel as soon as possible. He considered flying the plane himself, although he had no previous experience with a planeof that type, but the next day, Ezer Weizmann, then Commander of 'Hanegev' Squadron, showed up to inspect the plane. Weizmann decided to fly the plane to Sde Dov himself, and to enter it into active service. At Sde Dov, the Egyptian markings were removed from the plane's fuselage and wings, and the plane was taken to Yavne'el Airstrip.

Fearing the plane's impoundment by the British authorities, Sherut Ha'avir's Staff issued orders forbidding Hagalil Squadron from using it. It was hidden in an olive grove near Yavne'el Airstrip and covered with tarpaulin. Two weeks later, however, it was taken out of hiding and put into active service. Three additional Fairchild Arguses were purchased in South Africa and arrived in Israel in mid-May 1948. During the War of Independence, the planes were put into action over the Galilee, in the attack on the Nebi Yosha police station, and in reconnaissance, liaison and light transport roles.

Three of the IAF's four Fairchilds were shot down during the war. The fourth was sold on the civilian market after the war ended.